Spirit Energy’s Morecambe Gas Hub Marks 40 Years of Powering UK

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Spirit Energy is this month marking 40 years of operations from its Morecambe Hub in the UK’s East Irish Sea, having produced more than 7 trillion cubic feet of gas - enough to meet the energy needs of more than 5 million UK homes¹ over the same period.

Comprising the North Morecambe, South Morecambe and Rhyl fields, the Morecambe Hub at its peak met around one fifth of the UK’s domestic gas demand and is expected to remain in production until the end of this decade.

Spirit Energy plans to repurpose the depleted fields to develop Morecambe Net Zero (MNZ), the UK’s largest permanent, safe and secure carbon store, capable of storing one billion tons of CO2.The company could begin storing around four million tonnes of CO2 in the fields every year from 2030 - about 25 percent of the Government’s 2050 net zero emissions storage target. Through the company’s MNZ | Peak Cluster partnership, bringing together five of the UK’s leading cement and lime producers, the development would decarbonise 40 percent of UK cement and lime production.

The project would also provide an economic boost to the UK of approximately £1.8bn by 2050, creating and safeguarding more than 13,000 jobs across Derbyshire, Staffordshire and Cumbria, and attracting a further £5bn of investment in construction and operations work.

Spirit Energy CEO, Neil McCulloch, said: “Reaching 40 years of production is a tremendous milestone for the company and its employees, and is testament to the dedication of all our onshore and offshore teams. The hub plays an important role in supporting UK energy security, economic growth and local employment opportunities, and can continue to do so in the decades ahead as we transform the fields for carbon storage. It is a superb example of the energy transition in action.

“Carbon storage projects such as ours can make a major contribution to the UK’s net zero goals, and MNZ is uniquely well-placed to provide scale in the right place, at the right time, and at a lower cost to support government targets and deliver its CCUS Vision with greater certainty. Our ask is modest, pragmatic policy reforms that enable MNZ and other CCS projects outside the Track process to move forward, to drive industrial decarbonisation, and to deliver new green jobs and economic growth.”

Spirit Energy and the Peak Cluster partners have called for commercially mature CCS projects which are not part of the Government’s current Track 1 and 2 process to be provided with a clear alternative route to market, to unlock private investment and ensure the UK can hit its net-zero targets. This requires reliable carbon pricing on which CCS business models can be based.

A predictable and stable carbon price trajectory that ensures emitting carbon is more expensive than storing emissions also will bolster investor confidence in UK CCS projects and minimise the necessity for taxpayer support.

Centrica Group Chief Executive and Chair of Spirit Energy, Chris O’Shea, said: "For 40 years, Morecambe has been a cornerstone of the UK’s energy security, powering millions of homes and driving economic growth. As we look ahead, Morecambe's transformation into a world-class carbon storage hub will play an equally vital role - cutting emissions from industries like cement and lime by almost half and cementing the UK’s path to net zero. This is energy history evolving into energy future, delivering sustainability, jobs and economic opportunity for decades to come."

Today, gas from the Morecambe Hub is processed at Barrow Gas Terminal, near Barrow-in-Furness in Cumbria, before entry to the National Transmission System. Spirit Energy’s offshore facilities and onshore terminal also provide gathering and processing services for third parties.

Michelle Scrogham, MP for Barrow and Furness, said: “Congratulations to Spirit Energy and all its employees who across four decades have produced the gas that helped keep homes warm and powered the country’s economic growth, and are now transitioning to support the energy transition. Barrow and Furness is uniquely positioned to be a true leader in clean, green energy production, through offshore wind and tidal power and Spirit Energy’s own ambitious plans to develop a world-class carbon store.

“The MNZ project can support the UK’s net zero ambitions, along with providing thousands of highly skilled green jobs in Cumbria and supporting the UK’s transition from oil and gas. These plans will bring multi-billion pounds of investment to the North West, promoting growth and attracting further regional investment that will assist us in making our local economy more sustainable.”